South Africa’s rand and stocks rose on Wednesday, as regulations to mitigate the U.S. banking crisis boosted global confidence.
Regulators allayed some fears over a global banking system failure sparked by the collapse of U.S. Silicon Valley Bank earlier this month, which restored some risk appetite to markets.
At 1527 GMT, the rand ZAR=D3 traded at 18.1025 against the dollar, 0.28% stronger than its previous close.
The dollar index =USD, which measures the currency against six rivals, was last up about 0.19% at 102.68.
At the week’s halfway point, volumes and activity were low on the Johannesburg Stock Exchange, said Sasfin equity strategist David Shapiro.
“At least we’re in a steady incline, slowly clawing our way up just along the board,” Shapiro added.
The blue-chip Top 40 index .JTOPI closed 0.6% higher, while the broader all-share index .JALSHrose 0.57%.
Local stocks were lower than global counterparts with the MSCI All-World index .MIWD00000PUS, which captures equity performances across 23 developed economies, was up slightly at 0.15%.
Local investors will now turn their focus towards the South African Reserve Bank’s (SARB) rate decision on Thursday, with markets expecting a 25-basis-point increase.
The government’s benchmark 2030 bond ZAR2030= was stronger, with the yield down 7.5 basis points to 9.815%.